In a move to consolidate its position in the global healthcare IT space, the Indian multinational information technology service provider took a massive step towards becoming a global leader in providing Healthcare IT services. Tech Mahindra Ltd, reportedly witnessed an impressive quarterly growth last year, which characterises its recent market performance. Correspondingly, several of the other market contenders based in India including HCL Technologies Ltd, Infosys Limited, Tata Consultancy Services Limited and Wipro Limited have reported notable upticks in revenues in the previous few quarters.
Undoubtedly, Tech Mahindra Ltd is a specialist in business reengineering, digital transformation and consulting services. Over the years, the IT Company has earned itself a fair bit of reputation in the market, steadily increasing its client base. Acquisitions and merger are ideal for sustaining an impulsive growth in business and which is rightly exploited by most organisations. The acquisition of Florida-based CJS Solutions Group LLC trading as The HCI Group will certainly provide the needful impetus on extending the company’s worldwide operations. The HCI Group is known for its Tier-I healthcare service offerings in the UK and the US, primarily focusing on providing an end-to-end implementation of Electronic Medical Record (EMR) software, Electronic Health Record (EHR), training, support and software services. Further, the newly acquired company has a massive catalogue of Epic and Cerner (healthcare software) certified professionals that has been recognised globally. Going forward with the agreement, Tech Mahindra will reap benefits from the company’s extended operations in Asia-Pacific, The Middle East and few other parts of Europe apart for the UK. Meanwhile, 500 professionals from CJS will provide an additional boost to Tech Mahindra’s resource strength. The HCI Group’s service portfolio includes IT system implementation, go-live, training, clinical adoption, enterprise-wide advisory solutions, cyber security and optimisation.
The competition in the IT service space has been stiff off late, especially in the healthcare vertical. Industry leaders are implementing M&A strategies to withstand the growing pressure as well as to tap into potential business opportunities. Which is why the move is most likely to place the company in a better position to deliver quality services to its existing and new clients. Moreover, the new deal has already made an impact on Tech Mahindra’s stock valuation as it saw a considerable rise after the announcement. According to some of the online resources, the company’s stock prices might reach up to INR 550 apiece over the next couple of days. Its acquisition of the UK-based ‘BIO Agency Ltd’ in 2016 has so far served the company in its best interest. Similar to the current deal, BIO Agency Ltd was a part of company’s strategy of market expansion, which enabled it to offer services such as service design, customer experience and digital strategy services.
The healthcare sector has crucially realised the essence of digital technology and has been integrating it in several medical spheres. This, in turn, is creating lucrative opportunities for IT service providers who envision to further augmentation of technologies such as electronic medical record. With this, the India’s 5th largest outsourcing firm could wager higher on it new business domains such as blockchain and cyber security.